Axa Sun Life is adding a self-invested personal pension to its Retirement Solutions range. The ...
Axa Sun Life is adding a self-invested personal pension to its Retirement Solutions range.
The new product is aimed mainly at the transfer/income drawdown market, but can also accept single contributions.
There will be no requirement for a proportion of the pension fund to be invested in Axa investment funds. However, the Sipp fees will reflect the amount placed in an Axa Sun Life Trustee Investment plan (Tip), and with a Tip investment of £200,000 or more, the establishment and annual fees can be waived completely.
Initial commission of 5.2% is available on the Tip or, alternatively, IFAs can charge 3% initial plus 0.5% fund-based renewal.
Steve Burgess, head of pensions at Axa Sun Life, said: "With annuity rates at historically low levels, income drawdown is set to remain a growth area. As one of the top providers in this market we are continually developing our proposition to meet our customers' needs. Although we have offered external fund linkages within our existing Retirement Solutions transfer/drawdown proposition, we have been aware of the increasing demand from sophisticated investors for the full Sipp option."
He said the recent changes to the transfer regulations, which allow transfers between different drawdown product providers, made the introduction of a full Sipp even more compelling.
At the same time, Sun Life International, part of the Axa Group, has introduced two further with-profits options for investors in its Evolution fund range.
The Sun Life Evolution and Estate Planning bonds, both of which can be denominated in sterling, US dollar or euro, allow investors to access a range of funds from global investment management groups, as well as SLI's own internal range of funds.
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